Slide Show | August 2007

RETIREMENT TIMELINE

iStockphoto

It's never too early to start saving for retirement. But your strategy at 25 won't be the same as when you're 65. So here's what you need to do, and when you need to do it, to make the most of your savings.

Slide Show

THE KIPLINGER TIMELINE: A 60th Anniversary Exclusive

FIRST DAY ON THE JOB

iStockphoto

Sign up for your employer's retirement plan. If you're lucky, you will be automatically enrolled in your company's 401(k) plan. Be sure to contribute at least enough to capture your employer's match. For more advice, see:Max Out Your 401(k)Retirement Saving Made Easy

Slide Show

THE KIPLINGER TIMELINE: A 60th Anniversary Exclusive

AGE 50

iStockphoto

Start to make "catch up" contributions to your 401(k) account and your IRA. If you are 50 or older, you can kick in an extra $5,000 (for a total of $20,500 in 2008). You can contribute an extra $1,000 (for a total of $6,000 in 2008) to an IRA if you're 50 or older.For more advice, see:401(k) Catch-Up Contributions

Slide Show

THE KIPLINGER TIMELINE: A 60th Anniversary Exclusive

AGE 55

iStockphoto

Take penalty-free distributions from your 401(k) if you leave work and need the money. You'll still owe taxes. The early-out clause does not apply to IRAs.For more advice, seeDon't Rush to Roll Over a 401(k)

Slide Show

THE KIPLINGER TIMELINE: A 60th Anniversary Exclusive

AGE 65-67

iStockphoto

Start collecting full Social Security retirement benefits, depending on your birth year. For example, the full retirement age for people born between 1943 and 1954 is age 66. Earnings-cap limits disappear. Don't forget that at age 65, you qualify for Medicare.For more advice, see:
Both Spouses Can Get Social Security Benefits

Slide Show

THE KIPLINGER TIMELINE: A 60th Anniversary Exclusive

AGE 70½

iStockphoto

It's time to take minimum distributions from your retirement accounts each year. If you don't withdraw the right amount of money, you'll have to pay a 50% penalty on the amount of money you should have withdrawn but didn't.For more advice, see:Dealing With Required IRA Distributions